The Cost and Frequency of Cyber Attacks are on The Rise
The threat of a cyber breach is on the rise for businesses of all sizes and the financial implications cannot be understated. In its third Cyber Readiness Report, Hiscox provides an up-to-the-minute picture of the cyber readiness of organizations and a blueprint for best practices to counter the ever-evolving cyber threat.
Cyber Security: A Global Challenge
Hiscox’s annual report surveyed nearly 5,400 professionals from the US, UK, Germany, Belgium, France, Spain and the Netherlands who are responsible for their company’s cyber security. The results show an increasingly hostile operating environment for businesses ranging from Main Street’s small businesses to large and enterprise firms. A surprising 61% of firms reported experiencing a cyber incident in the past year, compared to 45% in 2018. Globally, the median cost for the loss associated with a cyber incident has risen from $229,000 to $369,000.
US Businesses and the Cyber Challenge
The 2019 Cyber Readiness Report found that just 11% of US businesses could be considered cyber ‘experts’ – far fewer than last year. While the cost associated with the typical cyber incident in the US is lower than it is in other countries, the number of attacks that companies are facing is sobering.
53% of companies experienced a cyber attack in the last year, up from 38% the previous year.
27% of US companies experienced four or more attacks in the last year.
Cyber incidents in the past 12 months cost US companies an average of $119,000.
56% of US firms experienced cyber-related issues because of a vendor or supplier.
How to Become a Cyber Expert
As a specialist insurer, Hiscox has been offering cyber cover for over 20 years, giving us unique insight into what it takes to recognize and respond to cyber threats. A proactive strategy focused on preventing, detecting and mitigating cyber threats can help reduce an organization’s overall risk.
The message that cyber risk is a real threat to businesses of all sizes is sinking in. Companies are increasingly aware of the risks and are pouring more resources into cyber protection, and yet, there is still a tremendous gap between awareness on the issue and actually having an effective defense.
Spending on cyber security will increase in the year ahead, as 72% of firms say they will increase their budget so they can better stay ahead of the risk.
The best possible outcome
For most organizations, prevention starts with building a ‘human firewall’ – training employees to recognize and respond to hacking attempts. Globally more businesses are increasing their spend on cyber security and employee training.
Detecting threats early reduces costs
Cyber security experts score high for deployment of security technologies, like antivirus software and intrusion detection systems. Globally, the number of firms investing in security technology is declining, putting them at risk.
Mitigate the damage should an attack occur
A key part of any cyber security strategy includes efforts to mitigate the effects of an adverse event. Early detection is key, and so is cyber insurance. Uptake and understanding of dedicated cyber insurance is on the rise.
Make sure your company is cyber ready. Learn how to prevent an attack before it happens, detect an intrusion early, and mitigate the damage to your bottom line. And learn how cyber insurance can protect your business from the costs associated with a data breach or hack, and provide expert resources to help you manage a cyber incident.
The content is provided for general informational purposes and is not intended to and does not constitute business or legal advice to any particular person or entity.